Plastic & Rubber Product Manufacturing
Companies in this industry engage in processing plastic materials and raw rubber to produce products such as plastic bags and bottles, plastic film and sheets, plastic pipe and foams, robber hoses, and tires. Major companies include US-based Berry Global Group, Cooper Tire & Rubber, Goodyear, and Newell Brands, as well as Amcor (Australia), Bridgestone (Japan), Michelin (France), Pirelli (Italy), and Reynolds Consumer Products (New Zealand).
Top producing country for plastic is China, while top producers of rubber include Thailand, Indonesia, and Vietnam, according to Statista.
The US plastic and rubber product manufacturing industry includes about 12,000 establishments (single-location companies and units of multi-location companies) with combined annual revenue of about $240 billion.
Tire manufacturers, which are included in the industry, are covered in a separate profile.
Competitive Landscape
Because plastic products are widely used in industry and as consumer products, demand depends on the overall health of the economy. The profitability of individual companies depends on product mix and production efficiency. Large companies have economies of scale in buying raw materials and in manufacturing commodity products such as bottles and plastic film. Small companies can compete effectively by specializing.
The US plastic and rubber product manufacturing industry overall is fragmented: the 50 largest companies account for about one-third of sales. However, the industry has hundreds of niches, determined by material type, manufacturing process, and end use, some of which are dominated by a few producers.
Competitive Advantages:
Access to Capital - Companies must make regular capital investments in production equipment upgrades. New technologies, including advanced injection molding, 3D printing, and increased production automation, enable companies to provide more complex and customized value-added products.
Raw Materials Costs - In recent years, access to inexpensive shale gas feedstocks have given US plastics producers a cost advantage over many of their global competitors. In part due to lower raw materials costs, the US plastics products and materials industry enjoys a global trade surplus compared to the trade deficit of the overall US manufacturing sector.
Products, Operations & Technology
Major products include fabricated plastic products, accounting for about 30% of the industry's revenue. Other products include plastic bottles (about 20%)
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Sales & Marketing
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Finance & Regulation
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Regional & International Issues
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Human Resources
Also includes the following chapters:
Quarterly Industry Update
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Industry Indicators
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Business Challenges
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Trends and Opportunities
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Call Preparation Questions
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Financial Information
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Industry Forecast
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Industry Websites
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Glossary of Acronyms